I absolutely love this deal for both companies as Pfizer (NYSE:PFE) is monetizing some of their faster growing assets which haven't been reflected in the stock's valuation, and Nestle (NESN) is acquiring a company that fits into their core business model. I'd need to know more details about the division to provide more commentary on valuation but Nestle has been a solid steward of capital and their track record speaks for itself. Pfizer is really turning into a well run company and they are making all of the right decisions. It will be interesting if Novartis (NYSE:NVS) at some point looks at the success Abbott (NYSE:ABT) and Pfizer are having in spinning off and selling non-core assets, and decides that it too could benefit from doing so. I think Novartis is very attractive at these levels and Pfizer isn't bad either.
Disclosure: I am long ABT.